The competence of JL engineers, enables fast redeployment of new products to meet the demands for cleaner, more technology driven cars. Both partners have massive financial reserves for venturing into new untracked fields The threats are: 1. There is strong competition from other groups who target the upper market 2. China demands a reduction of CO2 emission and the drive towards energy efficient technology and new environmental policies will be mandatory for the car industry 3. Luxury cars are the first hit targets in the event of economic depression.
CHAPTER I INTRODUCTION 1.1 BACKGROUND OF THE STUDY The tyre industry plays a very important role as an auto component in the vehicle segment. Tyre and tube are the basic supplement to the automotive vehicles is of utmost importance to countries economy. Tyres are used for passenger cars, commercial vehicles, heavy vehicles, light vehicles, etc. The major players in global tyre industry are Goodyear, MRF, Apollo, CEAT, Michelin, Bridgestone, Continental, etc. Global tyre industry is tending for a clear and definite shift from the developed North American and west Europeans countries to the developing Asian giants with China and India leading the pack.
Changing way of life and customer gatherings: Changing customer way of life and more and more atomic families coming up who will require a car for their little family can come about into upsurge into car requests. Expansion of Market: Entering into new markets and further infiltrating into creating markets like India, China and so forth will help the company to build their incomes. Fortifying business vehicle business: Market volume anticipated that would be 29 million units before the finish of 2015. Expanding mindfulness and upsurge being used of open transportation will add to its consistent development rate regardless of whether its traveler cars business faces the log jam.
They started buying cars and took utmost care of it with modern car cleaning facilities. The traditional car wash market, owned by dominant foreign investment firms, saw the launch of new firms by the donjus. With reasonable pricing and attractive marketing techniques the new firms try to establish their ventures in the country. 2015 Emergence of Auto Detailing Market (US) The auto industry, being a fast developing one, the market of auto detailing in the US is supposed to be steady with revenue of 9 million dollar for the next five years. The GDP of the industry is supposed to see a rise from 2.5% to 3.2% in this duration.
Name: Instructor: Course: Date: Supply Chain Introduction Supply chain refers to the process of making the product reach the target market. Various organizations have leveraged the power of supply chain management methods to achieve a competitive edge over their competitors (Gobetto, 4). Goods change hands from a wide array of divergent worldwide organizations where some type of value is usually added at each and every stage. The paper shall map the supply chain of the Automobile industry. The manufacturers industry has achieved substantial growth.
Incorporating above strategy the company evaluates best opportunities and skilled labor to cut down cost of production, hence maximizing profits. Various operation in involved in these market concentration are as follows- Korean Operation-Company has merged and leveraging the technology so acquired to for developing the trucks for Indian and world markets. Thailand operation-It is the most competitive market and hence product such as pickup trucks have been introduced to be sold in domestic as well as international markets. Restriction of access to distribution Channels South African Operations-Tata motors have introduced fragmented approach
Ford is focusing a global market which makes them want to sell the same car to all market segments. By using this market strategy, it will help Ford’s to lower the cost of manufacturing because manufacturing the cars from different countries or different regions will make the cost higher. In order to reduce manufacturing costs, the strategy is used to appeals the consumer needs in many different countries. Based on the world car strategy, the main difficulty is how to design a car that can meet the consumers need or demand in many different countries. To overcome the issue, Ford took a page from BMW, which uses the concept of “fashion forward” when designing its 3 Series cars for multiple markets.
In words of Taylor(2008) Human Resource Management is the range of people management functions, process and activities which involve more than one national context. These policies and practices are considered as human resource aspects of management position, including such issues as recruitment, screening, training, rewarding and appraisal which I mentioned above. When it comes to the BMW company, BMW is the basically German car company with rich experience in the field of comfortable and cutting-edge cars. The company was founded in 1981. The BMW cars company spends more money on its human inputs to add value and its big contribution of human resources also makes some advantage of the company.
2. Literature Review 2.1 Automobile competitive in developing country Emerging markets offer a wide range of opportunities for ﬁrms from developed markets, especially in terms of high growth potential. However, business models that enable ﬁrms to achieve competitive advantage in their home markets are often be challenged by the different nature of emerging markets. Firms, therefore, have to innovate and adapt their business models to better ﬁt the speciﬁc context of these international markets. The ﬁrms should adapt their business models in four phases: international extension, local emergency, local expansion, and local consolidation.
Tier one suppliers supplied large, integrated systems to the automakers, followed by tier two suppliers who provided individual and assembled components. The third tier suppliers provided single components for several tier-two suppliers. Toyota followed Keiretsu business structure which is a networked, industry specific, diversified conglomerate that resulted in the vertical integration of its supply chain. But due its global strategy, the supply chain became dangerously stretched and increased dependency on suppliers outside Japan and the keiretsu structure. Toyota leaned heavily on its single source supply chain approach reaping incredible economies of scale in the